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Sanofi's Offer Smacks of a Bitter Pill

Aventis Is Still Out of Reach
As Double-Voting Rights
Mar Rival's Hostile Bid

Edited by Hugo Dixon

Updated Feb. 23, 2004 11:59 p.m. ET

Sanofi Synthelabo's hostile bid for rival pharmaceuticals group Aventis is still off the mark. Aventis is trading at a 6% premium to its French suitor's offer. One reason may be Sanofi's rule of offering two votes for each share to its long-term investors. This means that if Aventis shareholders accept the offer, they would be stuck with only 39% of the votes -- despite contributing 49% of the capital. Ending this unfair practice would be both right and smart.